Another Buffet Buy - Cramer's Stop Trading! (10/1/08)

 |  Includes: C, GE, IBM
by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! tWednesday October 1.

Shorts or No Shorts

"The idea of a short-selling ban has been ludicrous for a long time," Jim Cramer said on Wednesday's "Stop Trading!”. "Welcome the shorts. The shorts have been dead right." NYSE head Duncan Niederauer said today that the SEC is considering reinstating the uptick rule. "That would be fabulous," Cramer said. "I hope they don't just do a penny uptick, maybe a nickel or a dime. ... It's time to get away from that silly ban and bring back the uptick rule the way it's been for years." Cramer also said that he agrees with Sen. John McCain that SEC CEO Christopher Cox is "very unsophisticated" and "not the right man for the job."

Buffett Buys Into Another Company - General Electric (NYSE:GE), Citigroup (NYSE:C)

Warren Buffett's agreed to buy $3 billion of General Electric stock, Cramer said: "I believe that everyone now realizes that, 'Wait a minute, if this deal's in the hole, this is my last chance to buy GE cheaply.'" Cramer added that he was "completely conflicted" because he works for General Electric and owns General Electric stock contractually as well. As for General Electric's need to raise capital, Cramer said that it is not alone. "No company is strong and solid," he said. "It's every man for himself. “You can’t trust anyone,” aside from maybe Warren Buffett's company." He said that any company in the country that has an opportunity to raise cash right now should do it, including Citigroup.

Caught in a Web – IBM (NYSE:IBM)

As for IBM, it's "caught up in this whole web of the notion that you need financing," Cramer said. "IBM has been money in the bank for a long time, but nobody trusts any company that needs financing right now.”

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and Stop Trading!

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or